Hedgeye Podcasts Hedgeye Investing Summit Spring 2025 | Tier1 Alpha CEO Craig Peterson, COO David Pegler, Sr. Exec. Advisor Mike Green
Apr 15, 2025
In this engaging discussion, Craig Peterson, CEO of Tier1 Alpha, and Mike Green, Sr. Exec. Advisor, delve into the intricacies of market structure and trading dynamics. They highlight the critical role of algorithms in trading and how volatility affects market strategies. The duo explores the transition of investor sentiment from complacency to panic and discusses portfolio management in uncertain conditions. They also emphasize the implications of automatic 401k contributions on markets, offering valuable insights for navigating today's complex investment landscape.
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0DTE Options: A Structural Trend
- Zero-day-to-expiry (0DTE) options are a structural market trend, not cyclical.
- They offer volatility dampening but become ineffective in high-volatility environments.
SPY Call Overriding Before Tariff Plan
- On April 1st, SPY calls north of $445,000 were heavily traded at the $560 strike price.
- This suggests speculation on a less severe tariff plan and bullish sentiment.
Volatility Spike Post-Tariff
- Short-term calendar volatility (e.g., 10-day VIX) reflects market complacency or panic.
- Post-tariff plan, this metric surged to its highest since 2020, indicating extreme panic.
